The inability of the US government to come to grips with its fiscal problems combined with the Fed's asinine Quantitative Easing policies are crushing the Dollar.
Wednesday, February 23, 2011
Broad Dollar Index coming under Increasing pressure
The Broad Dollar Index is comprised of a much larger or broad basket of currencies than the USDX which we more commonly reference. In this regards, it is a better representation of the how the Dollar is faring on the world currency markets. Notice how weak it has become and how close it is to challenging a key downside support level.
The inability of the US government to come to grips with its fiscal problems combined with the Fed's asinine Quantitative Easing policies are crushing the Dollar.
The inability of the US government to come to grips with its fiscal problems combined with the Fed's asinine Quantitative Easing policies are crushing the Dollar.
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Dan, Many thanks for posting this timely update. I checked out the broad index and it contains 26 currencies rather than the 6 in the USDX
ReplyDeletehttp://www.federalreserve.gov/releases/h10/summary/
I do not place much credence in the USDX any more because it is heavily overweighted to the EUR (57.6%) In my opinion the EUR is no longer to be trusted after Trichet accomodated the politicians (this is a very polite verb)and started printing money to buy Greek bonds in May 2010. He is still buying Portugese and Irish bonds at a rate of knots. This sort of nonsense is what the German Bundesbank was forbidden to do by law when the D-Mark still existed.